Which of the following is a true statement about the nature of Equipment, account? Multiple Choice While equipment is an asset, its use (depreciation) is an expense. While equipment is an asset, its use (depreciation) is a liability. While equipment is an asset, its use (depreciation) affects contributed capital. Equipment and its use (depreciation) are both liabilities.

If the asset is long-lived but not used in the normal operations of the business, it will be classified as a(n) a.expense. b.intangible asset. c.investment. d.fixed asset.

The December 31, 2024, account balances for Ostrich Corporation are presented below. The balances have already been appropriately adjusted. Accounts Balance Cash S 15,000 Accounts Receivable 160, 000 Prepaid Rent 5,000 Supplies 32,000 Land 275, 000 Accounts Payable 14,000 Salaries Payable 13, 000 Interest Payable 4,000 Notes Payable (due in two years) 42,000 Common Stock 310,000 Retained Earnings 64,000 Service Revenue 510,000 Salaries Expense 402, 000 Rent Expense 22,000 Utilities Expense 42, 000 Interest Expense 4,000 Required: Prepare an income statement for the year ended December 31, 2024. Prepare a statement of stockholders' equity for the year ended December 31, 2024, assuming no common stock was issued during 2024. Prepare a classified balance sheet as of December 31, 2024.

The cost incurred to extend an asset's useful life is recorded as: O a. maintenance expenditures. O b. accrued expenditures. O c. routine expenditures. d. capital expenditures.